Task 4.5.3 of 3
Apply the automatic adjustment rule if actual spending exceeds revenue by more than 3%: raise the household premium rate by up to 0.5 points, after which Congress must act.
Who does it
Treasury
When
Year 5+
Trade-off
An automatic premium adjustment keeps the fund solvent but raises taxes without a vote.
Part of: Switch every tax to its full rate
The employer tax reaches 7.5% and the household premium 4.0%. The trust fund starts building its 2-month reserve.